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6/24/2014 4:04PM

Citibank, Others Granted More Time on Stress Tests

The Federal Reserve said it would give Citigroup, and the U.S. units of HSBC, Royal Bank of Scotland and Banco Santander six more months to revise their submissions after the banks requested more time. Heard on the Street columnist John Carney has details on the News Hub. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

ay ay ay ay ay ay ... one of the biggest banks in the US has failed the baking stress tests mandated by the U S government welcome to your tunes the new sub I'm Lee Hawkins ... the Federal Reserve has announced it would give Citigroup and the U S units of HSBC Royal Bank of Scotland and Banco ... sun under an additional six that months to revise their submissions after the dates requested more time ... with a look at what this says about the health of the banking industry which joined by her down the street columnist ... John Carney town that start with Citibank this sure ... a really good story it's a big disappointment for investors um ... this is a bit arty indicated that they might take till January ... that's basically a whole easier ... in which investors were able to get that dividends that they'd been hoping to get one able to get the stock buybacks ... and it indicates everybody's afraid ... that the problem might be much bigger and deeper than ppb investors and first but then you would think that the base of the copper be recovered by now what the rates are still failing at this point is that it's been they've been having the stress test for a long time now that that has been ratcheting up the stress test taking part in the past ... but still failing them at this point ... and particularly failing not because the numbers are drawn to Citi group had a ... lot and a lot of capital that was fine by all those measures ... but that they have looked at them and said they didn't like the way the process worked inside of Citigroup ... and that is what city is working really hard to try to fix ... but it you can catch her saying what way after the crisis that go into this for years the process should be down all the other began to do ... in city been operating in more countries in Asia or other being what kinds of race or the oh what so I think that makes it more complex we saw this problem I had done in Mexico aam it it creates a lot of places in which you have to have a lot of infrastructure to be sure that it's well controlled ... anything he thinks a proposal block and a lot of experience they been the biggest international U S bank ... for a long time ... but as we saw with the propaganda Mexico this can open up to sort of vocalize problems taking the big thing is ... I've been that might've been part of a credit to the Federal Reserve's objection what they don't tell us about the state of thinking now what here I mean in general things seem much better the banks are much much healthier than they have been I in the years and years years even way before the crisis there healthier doubt ... that they were before the crisis ... but it still shows is that date we haven't made much progress as we bike ... and also that there might be these pickups along the way ... every time investors herbs that are willing to say ... ok where past a beginner things are gonna go smoothly we find out of no there's a light or scandal ... then ... he adds ... it's like you can never rest say and now they have been given six months is that enough time ... I did it better be called if they get to January and they still can stay up past the stress test they still can't figure out ... how to get right with that that ... that's can be severely disappointing and you may even see management changes ... that they'd know that I'm pretty sure though ... are I think the right time to time the fashion forward today I love it ... thank you